Initiative for Global Leadership in Concentrated Solar Power. Implementation Plan

Transcription

1 Implementation Plan November 2017

2 Contents Introduction... 2 Integrated SET Plan and the ten key priority actions... 2 Concentrated Solar Power (CSP) technology... 2 SET Plan strategic targets on CSP... 4 Temporary Working Group to prepare the Implementation Plan to reach the targets... 4 Priority technology actions (R&I Activities)... 6 The process to define the priority technology actions (R&I Activities)... 6 The R&I Activities... 8 Demonstration projects at commercial scale... 9 Context for the demonstration projects at commercial scale... 9 Main requirements for demonstration projects at commercial scale... 9 Innovative financing to support demonstration projects at commercial scale Non-technological actions: framework conditions Financing Regulatory framework Support to internationalisation Options for implementation instruments Contribution of research facilities to the execution of the Plan Annex I R&I Activities R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n R&I Activity n Annex II Input from the industrial and R&D sectors on the R&I Activities Annex III Financing tools and instruments P a g e

3 Introduction Integrated SET Plan and the ten key priority actions The Communication 'Towards an Integrated Strategic Energy Technology (SET) Plan: Accelerating the European Energy System Transformation' 1 was adopted by the European Commission (EC) on 15 September 2015 to reinforce the SET Plan as the technology pillar of the Research, Innovation and Competitiveness Dimension of the Energy Union. The Communication calls for greater prioritization, integration, coordination and ownership by the SET Plan countries and stakeholders and highlights the need to address gaps, duplications and synergies at the European Union (EU) and national level. To this end it defines 10 key priority actions to accelerate the energy system transformation in a cost-effective way, and calls upon the EC, SET Plan countries and stakeholders to co-operate to implement them. Ambitious targets have been defined under the ten key priority actions of the SET Plan aiming to maintain (or regain in some cases) EU's global leadership on low-carbon technologies with a particular emphasis on driving their costs down and improving their performance. For example, targets have been set for several renewable energy technologies with significant potential for cost reduction and large-scale deployment worldwide. The process for setting the targets has being highly participative engaging the SET Plan countries and a large number of stakeholders from research and industry. This joint ownership of decisions on prioritization has enhanced the SET Plan's legitimacy regarding strategic discussion on clean energy innovation at European level. Countries start to recognize the targets set as a strategic input to their energy programmes and policies. It is expected that this greater ownership will translate in a higher level of alignment between EU and national efforts, resulting in a higher impact regarding public investments as well as leverage of private investments. In order to define the approach to reach the targets, Implementation Plans (IP) are under preparation by Temporary Working Groups (TWG), each led by one SET Plan country 2. The IPs need to describe what needs to be done, how, by whom and when, and how to monitor progress. The TWG on Concentrated Solar Power was the first one to be launched. It was set up in April-May 2016, building on previous contacts between stakeholders, the EC and a number of SET Plan countries aimed at discussing an ambitious initiative for global leadership of the European CSP industry. The TWG has worked intensively to deliver this IP, which collects the outcomes of its work and its main recommendations. Concentrated Solar Power (CSP) technology By means of thermal energy storage, CSP [also defined as Solar Thermal Electricity (STE)] can make a significant contribution to the transformation of the European energy system by providing an important share of dispatchable renewable electricity. By providing flexibility for grid services, CSP can facilitate the integration of variable output renewables such as photovoltaic (PV) or wind energy, thereby contributing to the reliability of the transmission grid. The best solar resources for CSP are to be found in Southern Europe, which makes this technology complementary to those renewable energy technologies that find their best resources in other regions of Europe. 1 C(2015) 6317 final 2 The TWGs are formed by countries interested in a particular action, stakeholders and the European Commission. 2 P a g e

4 CSP will give a significant contribution to help meet the energy needs of large parts of the world, creating a potentially very important export sector for the European industry and supporting the decarbonisation agenda of the Paris Agreement. According to the forecasts of the International Energy Agency (IEA), CSP could account for up to 11% of the electricity generated worldwide and up to 4% of the electricity generated in Europe by The market potential worldwide is substantial and this justifies the efforts to maintain the current competitive advantage of the European industry in terms of both installed capacity in Europe and global market share of European companies. Figure 1 - IEA 2050 Roadmap Generation mix in % The European industry is global leader in CSP, with European entities involved in most of the projects developed so far worldwide. Yet, in order to maintain this global leadership, the European industry needs to stay ahead with more advanced, competitive technologies. Other countries are stepping up technology and commercial efforts in this field considerably, all targeting the same world markets as the European industry. In addition, innovation (i.e. new technologies reaching the market) needs to take place in Europe again, to maintain the confidence on European technologies of the international investors and promoters abroad. This is a very distinctive and crucial need of the CSP sector. There is a clear market failure in Europe to bring new CSP technologies to the market (to move new technologies from demonstration to first-of-a-kind commercial scale plants). A further aspect is that a substantial capacity in conventional power plants will need to be shut down over the next years, especially in Southern Europe, because it reaches the end of its useful lifetime. This can be a turning point for rebalancing the ratio between variable output renewables and dispatchable renewables in the European power system. CSP innovation needs, therefore, to be reactivated and for this it is necessary to reduce costs via a combination of technology improvements, volumes deployed (learning curve and economies of scale) and risk-financing to support innovation projects. In addition, it is necessary to improve other framework conditions for first-of-a-kind demonstration projects and subsequent market deployment, including the ability to supply dispatchable electricity generated by CSP plants from Southern Europe to Central/Northern Europe, thereby facilitating CSP access to new markets. 3 P a g e

5 SET Plan strategic targets on CSP The EC proposed targets for the CSP technology in an Issues Paper published in October Comments (Input Papers) were received from the European Solar Thermal Electricity Association (ESTELA), the European Association of Gas and Steam Turbine Manufacturers (EUTurbines), the Joint Programme on CSP/STE of the European Energy Research Alliance (EERA) (the three organizations provided a joint set of comments), from the European Platform of Universities in Energy Research & Education (EUA-EPUE) and from the Spanish company IBERDROLA. The SET Plan countries, representatives from the stakeholders and the EC eventually reached an agreement on the targets in January 2016 and committed to the preparation of an Implementation Plan. The targets for CSP are so defined: Agreed Strategic Targets on CSP 1. Short-term: > 40% cost reduction by 2020 (from 2013) translating into Supply price* < 10 c /kwh for a radiation of 2050 kwh/m2/year (conditions in Southern Europe) 2. Longer-term: develop the next generation of CSP/STE technology New cycles (including supercritical ones) with a first demonstrator by 2020, with the aim to achieve additional cost reductions and opening new business opportunities. * The supply price is meant to be the targeted price within Power Purchase Agreements (PPA) with a duration of 25 years It should be stressed that the CSP target cost for 2020 refers to dispatchable electricity. This is very important to note when comparing it to variable-output power from other renewable energy sources. Therefore, it should be clarified that this target is linked to large plants with storage large plants because scalability will be crucial to reach the targets. If the cost target is reached, CSP can become competitive in Europe with utility-scale PV and on-shore wind: CSP will offer a higher value thanks to its dispatchability and considering also that no grid and conventional-plant back-up costs are necessary. Temporary Working Group to prepare the Implementation Plan to reach the targets In April 2016 a TWG was set up, led by Spain as Chair and assisted by the EC, to prepare the IP. The TWG is formed by representatives from a number of SET Plan countries, the EC and the stakeholders (both industry and research) 3. The launch of the TWG was published on the website of the Strategic Energy Technologies Information System (SETIS) and any stakeholder active in the sector was invited to participate 4. The Chair proposed to the TWG a number of topics for discussion: General matters, objectives, governance, and functioning of the TWG. Members (involvement and transparency). 3 The TWG on CSP includes representatives of: Spain (Chair), Belgium, Cyprus, France, Germany, Italy, Portugal, Turkey, the European Commission, the European Solar Thermal Electricity Association, the European Association of Gas and Steam Turbine Manufacturers and the Joint Programme on CSP/STE of the European Energy Research Alliance P a g e

6 Priority technology actions: Actions on the various components of a CSP plant needed to reach the targets. o o Actions to address both high Technology Readiness Levels (TRLs) for 2020 and new technologies for beyond 2020 Informed by the SET Plan Integrated Roadmap Demonstration projects at commercial scale with high potential of replication Non-technological actions: framework conditions Support to internationalization: international cooperation can bring substantial benefits, including in terms of new CSP cycles Options for implementation instruments The outcome of the discussions on these 'building blocks'/topics is addressed in the following chapters. The TWG considers that these 'building blocks'/topics form a unity/'package' of integral actions needed to ensure that the targets are reached. Each topic supports and is supported by the others and well-thought implementation instruments are required. 5 P a g e

7 Priority technology actions (R&I Activities) The process to define the priority technology actions (R&I Activities) According to the 'building blocks'/topics proposed by the Chair, the TWG had to determine the priority technology actions on the various components of a CSP plant (solar field, reflecting surfaces, receiver, transfer fluid, storage, power block, system integration) needed to reach the targets. Actions should address both high TRLs for 2020 and new technologies cross-fertilization, breakthroughs for Informed by the list of R&I actions on CSP included in the document "Towards an Integrated Roadmap: Research Innovation Challenges and Needs of the EU Energy System" ('Integrated Roadmap) 5, the EC proposed to the TWG a draft list of priority technology action areas. This list included a portfolio analysis (Figure 2) that weighted all the Integrated Roadmap actions against the two strategic targets on CSP. The list covered the three categories of TRLs of the Integrated Roadmap: (i) Advance Research Programme, (ii) Industrial Research and Demonstration Programme and (iii) Innovative and Market Uptake Programme. Figure 2 - Summary of the portfolio analysis based on the Integrated Roadmap The TWG confirmed the analysis made by the EC leading to three main priority action areas: (1) storage systems, (2) more efficient components (optical solutions/concentrators, receivers, heat transfer fluids and turbines), and (3) integration and hybridization (priority given to hybridization with renewable resources such as biomass and geothermal) P a g e

8 After completing the analysis of the actions contained in the Integrated Roadmap, the TWG examined some additional technology action areas which were proposed by EUTurbines. These aimed (i) to provide additional flexibility to CSP plants and thus to the energy system, and (ii) to achieve additional, longerterm cost reductions by means of cross-fertilization of technology applications in other areas with a view to develop new CSP cycles (e.g., cycles using supercritical steam). Turbines are a crucial component in CSP plants but so far only few joint R&I efforts have been attempted between the CSP and the turbine manufacturing sector. Both sectors agree that by joining R&I efforts important additional cost reductions and efficiency improvements can result. Independently from types of solar collectors and configurations, CSP poses a number of challenges to turbine design due to differences in temperature and pressure as compared to other turbine applications. The TWG agreed on the merits of including the following two additional priority technology action areas: (4) application of supercritical steam turbines to CSP technology, and (5) development of advanced concepts for improved flexibility and efficiency in CSP applications. Figure 3 depicts the priority technology areas agreed by the TWG. Figure 3 - Main elements of a CSP plant that hold potential for cost reduction 7 P a g e

9 The R&I Activities Following the discussions in the TWG, eighteen industrial players and sixteen research centres worked on defining specific R&I Activities to be included in the Implementation Plan. Twelve R&I Activities were eventually identified and ranked according to their potential contribution to achieve the targets. Ranked list of R&I activities Ranking List of R&I Activities to reach the targets Activity 5: Improved central receiver molten salt technology Activity 3: Parabolic trough with silicon oil Activity 6: Next generation of central receiver power plants Activity 1: Advanced linear concentrator Fresnel technology with direct molten salt circulation as heat transfer fluid and for high temperature thermal energy storage Activity 2: Parabolic trough with molten salt Activity 4: Solar tower power plant to commercially scale-up and optimize the core components of the open volumetric air receiver technology Activity 8: Multi-tower central receiver beam down system Activity 9: Thermal energy storage Activity 10: Development of supercritical steam turbines optimised for the specifics of CSP applications Activity 11: Development of advanced concepts for improved flexibility in CSP applications Activity 12: Development and field test of CSP hybrid air Brayton turbine combined cycle sco 2 systems Activity 7: Pressurized air cycles for high efficiency solar thermal power plants Table 1 The ranked list of R&I Activities The R&I Activities are described in Annex I as part of the Implementation Plan. The analysis by the industrial players and research centres on the R&I Activities and on the process to identify them is included as Annex II. 8 P a g e

10 Demonstration projects at commercial scale Context for the demonstration projects at commercial scale In the CSP sector there is at present a serious market failure in Europe to move new technologies from demonstration to first-of-a-kind commercial-scale plants (FOAKs). As a result the market introduction of new CSP technologies developed in Europe is currently taking place in other continents. However, having innovation taking place and tested in Europe is essential for the European industry to keep sustained global leadership. CSP innovation, now in a stand-still in Europe, needs therefore to be reactivated. It should be noted that given the important amount of engineering involved in CSP plants, the industry estimates that the first replication of a FOAK (what could be referred to as the 'second of a kind') could achieve additional cost reductions of about 10-20% thanks to the learning curve only which would diminish the amount of innovative financing support required for subsequent replications. Another crucial element is dispatchability, which is the key asset of CSP. If adequately valued by the market, dispatchability could indeed allow CSP plants owners to have access to more favourable Power Purchase Agreements. The TWG concluded that FOAKs are a fundamental step to re-activate the deployment of CSP in Europe and that priority should be given to deployment efforts that demonstrate the validity of the cooperation mechanisms set out in the Renewable Energy Directive. This in particular was considered very important by the industry, since the cooperation mechanisms may allow to involve a large number of European countries in this technology, leading to further deployment in Europe. Main requirements for demonstration projects at commercial scale The TWG agreed that the FOAKs should meet the following requirements: Demonstrate at commercial scale crucial technology solutions to reach the targets Include storage in order to provide fully dispatchable power, and to allow for more flexible generation Have a high potential of replication in Europe or other world regions Make use of the cooperation mechanisms of the Renewable Energy Directive ( thereby facilitating access to new markets in Europe) Combine innovative financial instruments (e.g. loans, loan guarantees) complementing grants and structural funds (together with the equity side by the promoters in project finance) Have a business plan which includes an agreement with an off-taker interested in the high value of CSP dispatchable electricity The TWG considers that a minimum of 3 FOAKs should be implemented in Europe in the coming years, based upon different technology solutions to reach the cost-reduction targets. The objective should not be a one-shot project, but to create a framework/scheme. This is in line with the outcome of the ICF study tendered by DG RTD on financing needs for first-of-a-kind projects on SET Plan technologies, according to which between 5 and 10 new CSP FOAKs will be necessary in Europe by In addition, Europe needs P a g e

11 to keep pace with the ambitious efforts in other world regions (e.g. China) to bring innovative CSP technologies to the market. The TWG agreed that the choice of the innovative technology solutions proposed in these FOAKs should be up to the promoters they should not be prescribed by the IP. The promoters will need to reach the cost reduction targets with the innovative technologies they deem most suitable for this purpose. Innovative financing to support demonstration projects at commercial scale This issue has been examined by ICF in their study, in which it is estimated that an approximate investment of billion EUR would be necessary for the CSP FOAKs. Considering the high costs of CSP FOAKs, in order to finance such projects it is necessary to achieve a wellcoordinated, complex, puzzle-like financial engineering involving many elements relating to very different entities which generally include: a project finance scheme (as opposed to corporate finance) involving o In the equity side ideally grant support (in addition to the own resources from the promoters) R&I: support (EU, national, regional ) for the innovative part of the project Structural funds support to the infrastructure side of the plant when appropriate o In the debt side, ideally involvement of the European Investment Bank using its own instruments, or the European Fund for Strategic Investment (EFSI), or risk-sharing instruments with the EC - this would facilitate, in addition, the participation of other financial entities in the debt-financing of the project the agreement with an off-taker interested in the high value of CSP dispatchable electricity To achieve such a complex engineering it is necessary to ensure a sufficiently high degree of coordination of supporting instruments at the EU, national and regional level, including structural funds, as well as equity and debt public and private financing. In addition, if the cooperation mechanisms of the Renewable Energy Directive are applied, it is necessary to have in a project at least two Member States ('deployer' and 'off-taker') involved in the discussions. 10 P a g e

12 Non-technological actions: framework conditions Financing Regarding financing and considering the very high level of ambition in terms of cost-reductions and development of new technologies targeted, it is essential to ensure an optimal coordination and synergies of all funding resources potentially available. For the TWG this includes the following needs: Ensure co-financing by SET Plan countries and the EC: including via the alignment of national programs Better coordination with structural funds: facilitate the use of structural funds in much better coordination with EU and national grants and financial instruments Risk financing The status of the NER 300 CSP projects was raised by the industry and discussed at length by the TWG. There is a clear need for a sufficiently high degree of coordination and synergies of supporting instruments. Almost none of the six CSP projects which were included in the final list of awardees has reached the financial close yet and there are indications that some of them will not go ahead. This implies that a total NER 300 'award' amount of approximately 300 million EUR is currently frozen without the possibility to impact positively R&I in Europe in this sector. One of the reasons for this outcome seems to be that the NER300 applicants were left struggling to complete the financial close in market conditions which are unfavourable (the NER 300 awards represent indeed a substantial amount of funding but cover only 20-30% of each plant's cost). Project Acronym Country Technology Year of award Award amount decision HELIOS POWER 7 Cyprus Stirling dish 46,6 million EUR MAXIMUS Greece Stirling dish 44,6 million EUR 2012 MINOS 7 Greece Solar tower 42,1 million EUR PTC50-ALVARADO 8 Spain Solar tower 70,0 million EUR EOS GREEN ENERGY 7 Cyprus Solar tower 60,2 million EUR 2014 MAZARA SOLAR Italy Solar tower 40,0 million EUR Table 2- The CSP NER 300 projects For this reason the TWG considered that a much more comprehensive and coordinated approach in terms of financing sources is needed. In addition, the TWG agreed that the IP should call on the EC and the Member States to examine the possibility to channel (at least) the amount of 300 million EUR of NER 300 CSP grants finally not used to support the FOAKs (see previous chapter). Regulatory framework The TWG examined regulatory bottlenecks in EU and national legislation. A transparent and stable regulatory environment guaranteeing investor's confidence on CSP is necessary and the TWG identified the following main actions with respect to the regulatory framework to support the achievement of the CSP targets. 7 According to recent information, the projects HELIOS POWER, MINOS and EOS GREEN ENERGY have reached the Final Investment Decision or are about to reach it. 8 The Spanish authorities have confirmed that this project is withdrawn. 11 P a g e

13 Encourage the use of the cooperation mechanisms in the Renewable Energy Directive The SET Plan countries are encouraged to investigate their interest to participate in cooperation mechanisms under the Renewable Energy Directive for FOAKs and their willingness to support such projects (included financially) in order to reach the targets. This includes not only SET Plan countries interested in deploying CSP or in developing CSP technologies, but also those countries interested in importing dispatchable renewable electricity generated by CSP plants to achieve their 2020 renewable energy targets. A first example of use of the cooperation mechanisms is the cooperation mechanism between Germany and Denmark. This mechanism is focused on ground-mounted photovoltaic systems and is based on the principle of reciprocity (i.e. both countries have to give access to their auctions). In the view of the TWG the CSP Initiative should aim to achieve the first dispatchable renewable energy projects based on the cooperation mechanisms. Speed up and facilitate permitting process in SET Plan countries (and if appropriate their regions) Excessively long permitting processes may significantly hinder innovation. It was clarified that two main types of permits are needed for a CSP plant environmental and administrative authorizations. In addition, grid access can be an issue. SET Plan countries are encouraged to report on cases where their regulatory framework has hindered the development of CSP projects because of permits and grid access. 12 P a g e

14 Support to internationalisation International cooperation on CSP can significantly contribute to the achievement of the targets and to maintain global leadership from at least four angles, depending on the effectiveness of the actions taken: R&I cooperation based upon excellence in order to accelerate the development of new/breakthrough CSP technologies mainly linked to the second target (new cycles) R&I cooperation intended to develop technology suited for specific world regions which would lead to overall cost reductions and would facilitate the subsequent market penetration of European companies International cooperation/relations beyond R&I, but closely related to R&I, to support the global competitiveness of the European industry (issues of market access, international trade, development aid supporting the deployment of innovative technologies in other regions, etc.) International cooperation objectives stemming from the Paris Agreement, including possibly within the framework of Mission Innovation, and also to support investment in the deployment of innovative clean technologies in developing countries National representatives in the TWG pointed out that some of the issues described in the points above fall in the remit of other departments within their governments but they certainly see the rationale for channelling the efforts of various policies in support of low-carbon technologies. The research community is actively engaged in international cooperation in particular in the FP7-funded Integrated Research Programme on CSP (acronym: STAGE-STE) in which countries from all world regions (Australia, Chile, China, India, Libya, Morocco, Saudi Arabia, South Africa) are involved. The industry stresses the important role that development aid funding can have in promoting European technology innovation deployment in other world regions. The TWG acknowledged the potential benefits stemming from cooperation with countries in the Arabian Peninsula or in North Africa as being regions where European companies can compete with other technology providers. The development of large market shares in the most important world markets is considered a crucial aspect as the perceived mistakes made on photovoltaics (i.e. thinking mainly in terms of the European market) should not be repeated. The TWG considered that it would be very helpful if R&I international cooperation helps to establish bridges between European stakeholders and planners and policy makers in different world regions regarding the value proposition of (dispatchable) CSP. 13 P a g e

15 Options for implementation instruments The previous sections have highlighted the urgent need in the CSP sector to achieve a more focused, comprehensive and coordinated R&I approach to develop and demonstrate the necessary technologies to reach the targets and ensure that the European industry remains global leader. This is particularly the case regarding financing. A much better alignment and coordination of various EU and SET Plan countries' funding instruments, together with risk financing and private investment, is essential in this sector. In the view of the TWG it is essential to establish a framework to ensure an effective coordination between public funding at EU and national (and preferably regional) level (ideally with a single submission point) and to mobilize private investment with strong leverage effect. Such implementing framework needs in addition to be highly inclusive and transparent. Three different levels of ambition and potential effectiveness were examined by the TWG in this respect: 1. In a first level, the EC and the SET Plan countries interested in CSP would align the resources of their funding programmes with the strategic targets agreed and would try to better coordinate/synchronize funding, in some cases with some joint actions (e.g., ERA-NETs or other joint actions with variable geometry and not necessarily comprising EU funds). This approach requires the stakeholders to keep navigating between different funding instruments, the timings of which do not always coincide. 2. A second and higher level of potential effectiveness, more ambitious, would entail pooling the public funding resources available from the SET Plan countries interested in CSP and the EU in order to allow for a single submission point. 3. The third and highest level of ambition would aim at pooling the public funding resources of the SET Plan countries interested in CSP and the EC funding together with the stakeholders' private investments, in a public-public-private partnership. The industry and the research centres strongly prefer a framework in which there is a single submission point. National representatives in the TWG expressed concerns about the level of inclusiveness and transparency in some of the existing public-public-private partnerships as they tend to be dominated by a small number of very large companies from a limited number of countries. The TWG stressed that in case the public-public-private partnership formula is retained it should be articulated in a way to ensure full inclusiveness and transparency - including the inclusiveness of SMEs. Only by setting up a structure which can effectively mobilize the efforts of all interested countries and stakeholders can the CSP targets be reached, and this will require such structure to be highly inclusive. In addition, in the view of the TWG scaling up the InnovFin EDP facility should be considered. The TWG agreed on inviting the SET Plan countries interested in CSP, the EC and the stakeholders to examine the feasibility of a public-public-private partnership allowing for a single submission point and the pooling of resources to support the CSP Initiative. 14 P a g e

16 Contribution of research facilities to the execution of the Plan Further development of CSP technologies to 2030 and beyond will require availability of world class R&D infrastructures. The ESFRI project EU-SOLARIS is in current process to tentatively become a European Research Infrastructure Consortium (ERIC) and has an ambition to become a key R&D instrument to meet the objectives of the SET Plan. EU-SOLARIS will offer state-of-the-art R&D infrastructures related to CSP that can be accessed by researchers all over Europe, who are welcome to apply to use the infrastructures. The synergies between EU-SOLARIS and ambitious R&D activities will be essential in the further knowledge development and worldwide deployment of the technology by European companies. In addition, EU-SOLARIS will aim to facilitate projects in the EU Framework Programmes, future European industrial initiatives and education of specialists for the CSP industry. 15 P a g e

17 Annex I R&I Activities 16 P a g e

18 Main Key Action / Declaration of Intent Key Action 1: Sustain technological leadership by developing highly performant renewable technologies and their integration in the EU s energy system: Key Action 2: Reduce the cost of key renewable technologies Declaration of Intent on CSP/STE Summary: See Annex II State of the art: See R&I Activities R&I Activities of the Implementation Plan on CSP: Advanced linear concentrator Fresnel technology with direct molten salt circulation as heat transfer fluid and for high temperature thermal energy storage Parabolic trough with molten salt Parabolic trough with silicon oil Solar tower power plant to commercially scale-up and optimize the core components of the open volumetric air receiver technology Improved central receiver molten salt technology Next generation of central receiver power plants Pressurized air cycles for high efficiency solar thermal power plants Multi-tower central receiver beam down system Thermal energy storage Development of supercritical steam turbines optimised for the specifics of CSP applications Development of advanced concepts for improved flexibility in CSP applications Development and field test of CSP hybrid air Brayton turbine combined cycle sco 2 systems Non-technological aspects: See relevant chapter in the Implementation Plan Ongoing R&I activities: Name: Description: Timeline: Location/Party: Budget: ASE MS Demo Plant Archimede Solar Energy Platform with 2 MW molten salt parabolic trough solar field Italy/Archimede Solar Energy (ASE), SQM, others 6M co-funded by the Italian government Lazo de Sales Development of new parabolic through collector for using with molten salt. Aperture close to 9 m and using Hitec molten salt. 5 MW Spain/ACS COBRA 2M CDTI - Spanish government MSLOOP 2.0 Development of next Spain/ACS Cobra, 3.3 M 17 P a g e

19 step in the parabolic trough molten salt (Hitec) concept. New operational modes and hybridization with HYSOL concept. Elemental unit of the future MS solar boiler ASE, SBP, CADE, UCM Horizon 2020 Fast track to innovation EMSP and HPS 2 project Évora molten salt platform Portugal/University of Évora, DLR, TSK Flagsol, Yara, Steinmüller, eltherm, Eskom 7.5 M German Ministry of Economy and Energy PreFlexMS Innovative molten salt steam generator Portugal/PreFlexMS consortium 14.3 M Horizon 2020 CAPTure Competitive Solar Power Towers Spain/CAPTure consortium 6.5 M Horizon 2020 Solar Tower Jülich Solar Research and Demonstration Plant Jülich Germany/DLR, SIJ, KAM Supported by Kraftanlagen München STAGE-STE RAISELIFE ECOSTOCK II STEM Integrated Research Programme on CSP New materials for central receivers High temperature sensible heat storage using stabilized mineral wastes and by-products Solare termo-elettrico Magaldi Several locations/stage- STE consortium Several locations/raiselife consortium France (National project)/ ETC (spin-off), CNRS, ADF Italy/Magaldi Power 19,7 M FP7 and inkind contributions 10.5 M Horizon ,9 M co-funded by the French government 7 M co-funded by the Italian Ministry of Research Greenway CSP Greenway CSP Mersin Solar Tower Plant Turkey Private funding EU-SOLARIS European SOLAR Research Infrastructure for Concentrated Solar Power Distributed research infrastructure 4.4 M FP7 18 P a g e

20 International cooperation: Name: Description: Timeline: Countries involved: Budget per country: SolarPACES IEA's Algeria, Australia, Total annual Technology Austria, Brazil, Chile, budget Collaboration China, Egypt, European approximately Programme on Commission, France, 0,16 M Solar Power Germany, Greece, Israel, and Chemical Italy, Mexico, Morocco, Energy Systems Republic of Korea, South Africa, Spain, Switzerland, United Arab Emirates and United States US DOE Sunshot, Air Brayton Combustion Design, develop and test a 1000 C air inlet combustion system United States, Germany USA = 4M$ Germany= 0.1M$ Contacts: Inmaculada Figueroa, Chair, Spain 19 P a g e

21 R&I Activity n. 1 Title: Advanced linear concentrator Fresnel technology with direct molten salt circulation as heat transfer fluid and for high temperature thermal energy storage Targets: This R&I Activity will help to achieve the target on CSP cost reduction Monitoring mechanism: Power Purchase Agreements of new CSP plants in Europe Description: A natural continuity for the very successful development of parabolic technology with oil as heat transfer fluid and molten salts as heat storage fluid is to take linear concentrator technology to the next logical step, that of increased concentration to enable operation at higher temperatures and thus, higher thermodynamic conversion efficiency, together with a much reduced storage size for the same amount of energy stored. This is in favour of highly efficient solar thermal plants with a high capacity factor using large storage capacities. Parabolic troughs can and are being designed for higher concentration values, but there are severe constraints on how far it is possible to go, since individual troughs of large size have severe mechanical wind loads and other size related constraints. However this is an area where Linear Fresnel (LFR) technology has a very good opportunity since, without any changes to the mechanical wind forces on the individual mirrors, by first principles in optics, they can be designed to reach even higher concentration values. When combined with present day evacuated tubes, the LFR collector efficiency curve may decrease with a smaller heat loss coefficient and, at temperatures like 565ºC, be expected to reach very competitive instantaneous efficiency values. In this way LFR concentrators, known to suffer more than parabolic troughs from IAM (Incidence Angle Modifier) effects, could possibly reach an annual efficiency in terms of energy delivery much closer to that of parabolic trough systems, with many potential advantages in terms of overall system and O&M costs LFR concentrators have several potential advantages to achieve an inherently lower cost per sqm as for example the use of cheaper flat reflector components, a stationary receiver tube, not requiring any flexible connections, low wind loads resulting in lighter support constructions. Thus a strong and renewed industry s interest on the technology for low cost electricity production is certainly to be expected. However these new collector developments for very high temperature operation have only been proven in small demonstrator loops, or in loops testing individual components. In fact they were not yet given a chance of being demonstrated on a sufficiently large scale for a subsequent entrance on the market. Regardless of which linear concentrator technology is proposed for development (parabolic trough or Fresnel), at these very high temperatures many issues remain to be addressed like: operation of the new concentrators with salts as heat transfer fluid; different and eventually more suitable types of salt; durability of the evacuated tubular receivers at very high temperature; proper integration and operation in view of the thermal energy storage and energy delivery. High concentration has the extra advantage of reducing the number of rows in a concentrator field, with cost impacts on receiver length, receiver volume, pipe length, number of thermal loop components, thermal losses and parasitic losses associated with the loop. In short, before jumping straight from conventional linear concentrating technologies of the past into totally new possibilities like those arising from supercritical CO 2 turbines at even higher temperatures (600ºC and higher for supercritical CO 2 turbines), the next new effort to be made should be on much more straightforward and simpler improvements over present day linear concentration technologies, which have been developed by many companies in the last few years without, due to the present crisis on the CSP market, having the chance to reach the bankability milestone. They are much closer already to the higher TRLs required. In fact, the experience gained on molten salts at present day plants in operation and their use at higher temperatures will be quite important (even crucial) for the next and harder step of going past 600ºC, using 20 P a g e

22 possibly more advanced new salts or other fluids. The reference to 565ºC also deserves an explanation. The idea is to be able to use the present day steam turbines operating at 540ºC with their high efficiencies, typical of today s thermal power plants, and still stay below the critical 600ºC barrier, requiring special developments and the use of more expensive and/or sophisticated materials, something running contrary to the idea of moving quickly to reliable and cheaper solutions for the market, and able to claim high TRL related experience. This proposal addresses these issues and proposes the reach of a significant 10 MW plant demonstration stage: 1) Advanced designs - New optical designs for large acceptance angle and high concentration value - New cost-optimized commercial designs (higher concentration, improved receiver optics, improved coatings) for high temperature molten salts 2) Plant design Technical-economical optimization of a 10 MW molten salt power plant with Linear Concentrator Fresnel solar field and 6+(hours) thermal storage TRL: From TRL 6 to TRL 8 Total budget required: 30 M Expected deliverables: - Testing and evaluating critical plant components (reliability of standard components) o Molten salt pumps and valves o Instrumentation, sensors, and pipe heating o Fixed receiver operation o Full size (length) collector loop (collector, interconnections, drives, instrumentation, emergency concept, control) Timeline: 4 years - Develop plant engineering, for full operation control in clear skies and variable solar radiation days, start-up and shutdown operation, night time freezing protection, including drain-down gravity assisted strategies. Testing and demonstration of process control concepts (reliability of normal control). o Demonstration of all control processes in the plant by usage of a virtual solar field model that operates via industry-standard interfaces o Demonstration of loop control concept in a full size collector loop o Hardware-in-the-loop simulation of a full solar field - Selection of best molten salt suitable (existing or new working fluid) regarding technical, economical and risk assessment (reduce the risks related to freezing and chemical decomposition of the salt at high heat), as well as corrosion related impacts - Demonstration of evacuated tubular receivers with selective coatings to be heat resistant (no out-gassing) and inner pipes to be corrosion resistant. - Optimization of the (modular) thermal storage, its integration and operational requirements in the system, in order to improve scalability and reduce freezing risks - Demonstration of molten salt specific operations (availability of emergency operations) o Demonstration of successful and economical commissioning of the salt loop 21 P a g e

23 (melting of raw material, filling process, commissioning time) o Demonstration of drainage process in a representative configuration o Demonstration of freezing and heating process (emergency case) o Work out and demonstrate handling of exceptional operation situations (maintenance of loops, repair of leakages, re-vitalizing frozen parts, exchange of components) - Technical-economical optimization of the existing solar field. Optimized design of the whole plant, including BOP, in order to reduce the freezing and environmental risks, to improve reliability, but also to propose a scalable and dispatchable plant. - Development of a library for industrial needs and creation of a complete model in order to define process control on normal and emergency cases suitable to avoid freezing, as well as proper maintenance procedures - Integration of forecasting and power grid management and trading as a key input for reliable operation Party / Parties: Implementation instruments: Indicative financing contribution: See Annex III 22 P a g e

24 R&I Activity n. 2 Title: Parabolic trough with molten salts Targets: This R&I Activity will help to achieve the target on CSP cost reduction Monitoring mechanism: Power Purchase Agreements of new CSP plants in Europe Description: Molten salt as heat transfer fluid in parabolic trough systems is an attractive technical option to increase solar-to-electric efficiency, reduce storage costs, enhance co-firing efficiency, simplify control system by separating the solar harvest from electricity production, and improve environmental impact compared to the state of the art oil plants. Technological options for main components like collectors are already demonstrated. For fast commercialisation it is vital to increase the reliability in the whole system by reducing risks originating from molten salt specific operation conditions in main but also sub-ordinate components. The path from today s TRL 6 to TRL 8 requires intensive testing of the components. Compared to tower systems the line focusing systems allow beside scalability towards larger plant sizes- a break-down of relevant demonstration tasks into smaller units. The action should address all risk-relevant components and include a well-organized project management dedicated to the task of putting together and publishing the knowledge obtained in the various demonstration activities. The overall objective is to bring the technology to a risk level that is acceptable for EPCs and lenders. TRL: From TRL 6 to TRL 8 Total budget required: 11.5 M Expected deliverables: - Testing and evaluating critical plant components (reliability of standard components) o Large diameter header systems o Molten salt pumps and valves o Instrumentation, sensors, and pipe heating o Full size (length) collector loop (collector, interconnections, drives, instrumentation, emergency concept, control) - Testing and demonstration of process control concept (reliability of normal control) o Demonstration of all control processes in the plant by usage of a virtual solar field model that operates via industry-standard interfaces. o Demonstrate loop control concept in a full size collector loop o Hardware-in-the-loop simulation of a full solar field - Demonstration of molten salt specific operations (availability of emergency operations) o Demonstration of drainage process in a representative configuration Timeline: Development of testing procedures: 1 year Verified qualification methods available for critical components: 1.5 years Implementation of testing hardware in loop for further monitoring: 1.5 years Development of virtual solar field model: 2,5 years Demonstrate loop control concept in a full size collector loop or commercial plant: 1.5 years Implementation of drainage hardware demonstration loop or in precommercial plant: 1.5 years Demonstration of freezing and heating 23 P a g e

25 o Demonstration of freezing and heating process (emergency case) o Work out and demonstrate handling of exceptional operation situations (first filling with MS, maintenance of loops, repair of leakages, re-vitalizing frozen parts) - Systematic risk assessment and documentation for molten salt line focusing systems o identification of risk sources (with EPCs, suppliers, consultants) o quantification of risk probability and their impact (e.g. FMECA) o compilation of mitigation measures process: 1.5 years Demonstration of exceptional operation situations: 1.5 years Identification of risk sources: 2 years Quantification of impact and probability: 1 year Develop mitigation measures: 1 year Party / Parties: Implementation instruments: Indicative financing contribution: See Annex III 24 P a g e

26 R&I Activity n. 3 Title: Parabolic trough with silicon oil Targets: This R&I Activity will help to achieve the target on CSP cost reduction Monitoring mechanism: Power Purchase Agreements of new CSP plants in Europe Description: Silicon oil as heat transfer fluid promises higher operating temperatures in the solar field of parabolic trough plants. At the same time these fluids are environmentally harmless in case of leakages compared to the actually used fluids in commercial plants. The operating temperature limit of silicon oil is 430 C which allows more than 30K higher temperatures compared to the state-of-the-art synthetic oil used today. This additional temperature spread between inlet and outlet leads to higher solar field energy enthalpy output and higher system efficiencies at the power block side. Combined with innovative large-scale collectors with high concentration factors and high optical and thermal efficiencies, which are optimized concerning manufacturing and reduced sub component numbers, the use of silicon oil can lead to significant cost reduction of the solar field. The Activity aims at demonstrating all sub-components such as collectors, mirrors, receivers, valves, heat exchanger and steam generator in a pre-commercial scale with 2 complete loops. The accompanying research actions should answer all open questions concerning performance and durability of all involved elements of the system to reach bankability at the end of the project TRL: From TRL 6 to TRL 8 Total budget required: 5-8 M Expected deliverables: - Construction of at least 2 loops of full scale parabolic trough collectors including oil/salt heat exchanger and steam generator - Long term operation to identify durability issues - Assessment of performance of collector and its subcomponents - Analysis of solar flux and heat transfer at receivers to identify maximum film temperatures in fluid - Analysis of heat transfer fluid composition and verification of its durability and chemical stability during commercial plant operation - Optimization of (oil/salt) heat exchanger for increased temperatures up to 430 C, also under transient conditions Timeline: 3 years Party / Parties: Implementation instruments: Indicative financing contribution: See Annex III 25 P a g e